The rate at which house prices are rising accelerated rapidly during January, boosted by strong consumer confidence, a survey claims.
The Royal Institution of Chartered Surveyors said property prices in England and Wales increased at double their average rate since 1978 during the three months to the end of January.
The institution believes consumers have shaken off fears that Britain could be heading for a recession.
The group said prices had "taken off" during January after dipping in November and recovering slightly in December.
Surveyors' confidence has now risen above the levels seen before the September 11 terrorist attacks.
According to the Royal Institution, 46 per cent more chartered surveyors reported a rise in prices during the three months to the end of January, than reported a fall, with the majority reporting gains of at least two per cent.
This figure was 17 percentage points higher than that in December, and double the figure reported in November.
The group said it expected price rises and sales activity to remain strong in the coming three months, boosted by historically low interest rates combined with high consumer confidence.
More surveyors reported price rises in London and the South East than any other region,.
The rise in prices was reported in all parts of England and Wales except the West Midlands.
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